Perhaps XRP has just dodged a bullet. Following a steep decline from its most recent peak which was close to $2.70, the cryptocurrency gained stability at the 26-day EMA, a crucial technical support area that has frequently functioned as a trend confirmation line in previous market cycles. XRP was on the verge of losing a fundamental thershold. With a decline toward the $2.30-$2.25 range, price action threatened to drop below important moving averages.
XRP, however0 showed renewed buyer interest at these levels by convincingly rebounding off the 26 EMA rather than a clean breakdown. This comeback may be seen as a confirmation of trend support, confirming that bulls are not yet prepared to give up. But there were some restrictions on the comeback.
A persistent downward trend in trading volume since the last significant rally indicates that there is still a deficiency in broader market participation. When volume drops during a pullback, as it is right now, it frequently indicates that bearish momentum is waning, which makes room for bullish reversals. The biggest problem is that the lack of buying interest makes the whole picture worse almost immediately.
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From a structural perspective, XRP appears to be in good shape. The 26 EMA's successful defense represents a significant victory. Key resistance is currently located in the $2.60-$2.70 range; if it is reclaimed with significant volume, XRP may be on track to reach the psychological and technical milestone of $3 again.
In the event that the current move turns out to be a dead cat bounce, the next support will be located at $2.05 and the long-term 200 EMA below that. To put it briefly, XRP has been saved for the time being, but the next volume breakout will determine whether this is a real comeback or merely a pause before more declines.
